EIA Data Points to Refiners Coming Out of Maintenance -- OPIS
March 29 2023 - 1:22PM
Dow Jones News
U.S. refiners are increasing runs and appear to have completed
the bulk of maintenance work according to Wednesday's Energy
Information Administration supply and demand data for the week
ended Friday.
The agency said refinery utilization last week rose to a 2023
high of 90.3% of capacity, with Gulf Coast refineries running close
to 95%.
Crude runs along with other feedstocks are closing in on 2022
levels, EIA said, adding that crude runs last week jumped by more
than 400,000 b/d to 15.813 million b/d, just 100,000 b/d below the
same time last year. Gross runs rose by a more modest 315,000 b/d
to 16,261 million b/d, the highest rate since late December.
While Gulf Coast refinery run rates closed in on 95% of
capacity, there were also notable increases on the East Coast and
in the Rockies.
The East Coast increase to 71.5% of capacity could be explained
by the return to service of some equipment at the Phillips 66 Co.'s
Bayway refinery in Linden, N.J.
Among the marquee fuels, increased runs were showing up in
distillate and jet production.
Distillate output rose by 130,000 b/d to 4.633 million b/d, with
jet up to 1.662 million b/d. Total gasoline output rose above 10
million b/d to average 10.038 million b/d. But when excluding the
adjustment for biofuel blending, gasoline output was down nominally
to just below 9.6 million b/d.
Higher runs along with a slide in imports toward a two-year low
helped crude stocks fall by 7.5 million bbl. The crude import rate
fell to 5.325 million b/d, the lowest level since the week ended
March 12, 2021. The Gulf Coast saw imports fall to barely 1 million
b/d. Some recent fog issues may have impacted the arrival of
foreign barrels.
The overall U.S. crude draw was largely led by Gulf Coast
storage tanks falling by 6.4 million bbl week to week.
Though gasoline output was higher, that did little to help
supplies, which fell by 2.9 million bbl. The East Coast led the
charge, down 2.7 million bbl. The West Coast saw inventories move
back above 30 million bbl. The higher gasoline stocks in the region
likely are due to the import rate of 270,000 b/d, one of the
highest levels on record.
U.S. gasoline and component imports last week rose to 873,000
b/d and the East Coast import nearly doubled from the previous week
to 565,000 b/d. Exports were down nominally to 826,000 b/d.
The EIA measured gasoline demand at 9.145 million b/d, the
highest level so far this year. While that's up only 185,000 b/d
week to week, it's 646,000 b/d higher than the same week last year.
It also brings the year-to-date measurement within 1% of the same
period of 2022.
Another potential encouraging demand sign comes via the ethanol
blending level of 888,000 b/d, also a 2023 high. Refiners and
blenders increasing ethanol blending could be a sign of increasing
demand.
EIA's distillate numbers were a bit more bearish. Distillate
stocks grew by 300,000 b/d, and the agency had demand down more
than 250,000 b/d to 3.713 million b/d. Though that demand drop may
be concerning, it is not far off last year's levels.
Futures traders met the distillate data with strong selling even
as East Coast distillate supplies were off by 1.5 million bbl 1.8
million bbl.
Exports may also be pointing to some diesel caution with rates
down nearly 200,000 b/d to 1.026 million b/d.
One of the more positive signs for refiners in the data was
total product supplied jumping to 20.476 million b/d, a 2023 high
with only distillate and jet fuel product supplied slipping week to
week.
This content was created by Oil Price Information Service, which
is operated by Dow Jones & Co. OPIS is run independently from
Dow Jones Newswires and The Wall Street Journal.
--Reporting by Denton Cinquegrana, dcinquegrana@opisnet.com;
Editing by Jeff Barber, jbarber@opisnet.com
(END) Dow Jones Newswires
March 29, 2023 13:07 ET (17:07 GMT)
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